According to sources that have knowledge of the plans, Bloomberg has reported that Magna International is negotiating with Spain’s Grupo Antolin for the latter to purchase its car-interior unit.
The people, which declined to reveal their identity because the talks are still held behind closed doors, said the deal could be delayed or even break down completely but an agreement is nevertheless expected as soon as April, with the Spanish firm acquiring a part or all the car-interior business. The Magna unit delivers around $3 billion in sales each year and could become interesting for other investors as well, the sources added.
With the rapidly changing landscape of the auto industry today the suppliers are increasingly forced to consolidate their businesses – carmakers are seeking major parts makers that can deliver more components than ever in a single deal as a cost savings measure. That puts at an advantage the parts makers with an extensive product lineup and an increased global presence as the automakers continue to advance with their manufacturing expansions, setting up new factories in numerous markets – including China, Mexico, and Brazil.
For Grupo Antolin, a closely held company, a deal could yield Chairman Ernesto Antolin a step closer to its declared target of lifting the firm to become the biggest supplier of car interiors on the globe. Meanwhile, Magna could gain much needed cash resources to focus on expanding its operations in the electronics, powertrain, and batteries segments.
Via Automotive News Europe